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With regard to increasing product safety concerns and awareness, on August 14, 2008 the Consumer Product Safety Improvement Act (CPSIA) was signed into law to authorize the Consumer Product Safety Commission (CPSC) to use new statutory tools to address the safety of imports. CPSC has launched a series of new requirements for consumer goods being imported to the United States. It will cover the following key aspects related to testing and certification. In view of this situation, we have taken prompt action to review and update our current product safety procedures to ensure that we comply with the new requirements.

• General Conformity Certification (GCC) (Sect 102)
• Mandatory third party testing for certain children's products (Sect 102)
• Lowering permissible levels of lead limits & lead paint (Sect 101)Prohibition on sale of certain children's products containing specific phthalates (Sect 108)
• Permanent tracking labels on children's products (Sect 103)

Products manufactured on November 12, 2008 and thereafter must comply as defined by GCC. A mandatory third party testing for certain children's products is required. It is briefly summarized as follows:

Client's responsibilities:
• Clients need to inform the age group of product on or before order confirmation
• Clients are required to fill out a safety survey form to be submitted to the manufacturer for performing the required laboratory testing
• Clients need to consider the additional lead-time for performing the required laboratory testing
• Clients need to be aware of the additional testing charge
• Clients are responsible for ensuring their product design is in line with the Consumer Product Safety Act (CPSA) bans as well as any similar rule, ban, standard, or regulation under any other Act enforced by CPSC.

Manufacturer's responsibilities:
• According to the Act, the manufacturer is responsible for issuing a conformity certificate per shipment to the United States for products being manufactured on November 12, 2008 and thereafter
• We always place product safety as a top priority and adhere to the requirements for heavy metal and phthalate control under our corporate policy. It is no less important for us to closely collaborate with our suppliers to follow and comply with the product safety requirements as well.

To learn more about these new requirements, you may browse the CPSC website at www.cpsc.gov for more details. We shall keep you informed of any additional update. You can also check with our sales representatives if you have any additional concerns.